Value-based pricing is the reverse process of ________ pricing.
A) good-value
B) target costing
C) cost-based
D) value-added
E) competition-based

Question

Quizplus · Accepted Answer

Value-based pricing starts with understanding the value that a product or service provides to customers and setting a price based on that perceived value. This is opposite to cost-based pricing, which starts with understanding the cost of producing a product or service and adding a markup to determine the price. Good-value pricing aims to offer customers the best value for money, target costing involves determining a target cost and then working backwards to set a price, value-added pricing adds a markup to cover the cost of value-added features, and competition-based pricing involves setting prices based on what competitors are charging.

Value-Based Pricing Is the Reverse Process of ________ Pricing